Activity

Algorithmically derived knowledge is a new source of asymmetric market power. Hal Varian noted this problem in 1995, writing in a paper called “Economic Mechanism Design for Computerized Agents” that “to function effectively, a computerized agent has to know a lot about its owner’s preferences: e.g…

Meanwhile, there is an incentive to cut income for ordinary workers. Cutting wages drives up net income and thus the price of the stock in which executives are increasingly paid. Those executives who are not motivated by cupidity are held hostage. Any CEO who doesn’t keep growing the share price or…

Since the mid-1980s, Lazonick observes, “the resource-allocation regime at many, if not most, major U.S. business corporations has transitioned from ‘retain-and-reinvest’ to ‘downsize-and-distribute.’ Under retain-and-reinvest, the corporation retains earnings and reinvests them in the productive c…